Commerce Department insurance should sanctions
Last week the Minnesota Department of Commerce ordered State Farm Insurance agency to pay $ 775000 in fines, because the state farm and unfair trade practices such prejudice that loadings of pressure on doctors to change opinions, slides and bonuses in contracts underpaying claims.
The size sounds fine, but it was not close enough for a company which, to $ 715.7 million in premiums and owners of domestic animals of automobile insurance in Minnesota and only 25 ranking in the list Fortune 500 largest companies in America. In addition, State Farm has one quarter of all owners of shares of the Company auto insurance and Minnesota.
The fines are intended for businesses to comply with illegal practices and, to this end, the Commerce Department failed. In the area of State Farm Insurance, is $ 775000 Chump Change.
According to a Commerce Department report released on June 27, 2002, Minnesota State Farm violated the insurance laws of more than 13,000 times. The department could have potentially fine farm state $ 10000 for each offence. Some simple math, and a State to find a small firm paid $ 59 for each offence against Minnesota insurance law.
Among the numerous violations against the law seems to be a common practice for State Farm. Undoubtedly, other insurance companies, and it will be for example State Farm “yes ma’aming” Lady Justice and willingly accept small fines. When a company chooses to pay fines rather than change is a deterrent no longer exists.
But the sad reality is that State Farm has a history well-established fault of the company. In 1999, the State of New York State Farm fine of $ 50000 for submitting false information. In September 2001, State Farm a $ 75,000 civil fine misallocating payment penalties. During 2000, the Supreme Court of Utah has a penalty of $ 145 million for civil status of the battery of repeated violations. During the year 2000, when the Quackenbush scandal, a fine of $ 3 billion recommended by the Insurance Board in California was $ 12 million by insurance Commissioner Chuck Quackenbush. State Farm to pay later Quackenbush’s resume the election campaign.
Higher fines should be addressed. Token sanctions only encourage other insurance companies farm state forward. In reality, the fines should not be or have an impact on customers in the form of increased insurance premiums. Perhaps heavy time in prison intimidation prison is the ideal solution for verrufenen leaders. While State Farm is not the only insurance company acts of vandalism disappointment, their case is just another example of sanctions but not sufficient.
The Commerce Department must achieve the objective and the fines by the agenda of its mandate should prevent corporate crookery. Given that insurance covers all, the department should impose sanctions on obtaining change and Minnesota consumers a sense of justice and security. Eye Candy Posing strengthens insurance claims by the company feelings, above the law, because they can afford.
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